No seriously, I've been talking to the Cedar Fair CFO

Posted Tuesday, July 31, 2007 9:40 AM | Contributed by Jeff

[Ed. note: A great many people have pointed out that no amount of searching on the Internet turns up any significant results about Destiny Capital or its credibility, track record or resources as an investor, which is not surprising given that it appears to have been created specifically for the purpose of buying out Cedar Fair. But there also aren't a lot of results on the part of its founders. Given the questionable credibility of the NY Post and The Sandusky Register, frankly I suggest taking any of this as a grain of salt. -J]

Despite Kinzel's denial, Robert McDuff Sr., CEO of Destiny Capital, said his company had been in talks with Cedar Fair for the last two weeks and agreed to keep Kinzel and other top officials on board if a deal is made. "Me and Peter Crage have been communicating through e-mail and phone," McDuff said. "It's just in the early stages."

Read more from The Sandusky Register.

Tuesday, July 31, 2007 9:49 AM
At least this gives us all something to talk about since nothing else much has been going on. :)

Besides, Disney bought up a ton of land in swampy central Florida under a ton of dummy company names. So, there being little to nothing on Destiny Capital means nothing really. I'm not quite sure why McDuff keeps blabbing his mouth though. He should be denying things like Kinzel.

Tuesday, July 31, 2007 10:16 AM
Could Robert McDuff Jr. be the president of the legendary Coaster Preservation Organization (formly Club)? Stay tuned...


Tuesday, July 31, 2007 10:36 AM
Tune in tomorrow, on As The World Turns...
Tuesday, July 31, 2007 10:49 AM
"Me and Peter Crage have been communicating through e-mail and phone,"

The grammar there is enough to make me question the whole thing

Tuesday, July 31, 2007 10:52 AM
I think it's hilarious that these two sides can't even get their stories/lies straight. Something tells me this isn't a match made in heaven.
Tuesday, July 31, 2007 10:57 AM
Yep. One sure way to increase the asking price---or just flat-out kil the deal---is to blab to the press after your negotating partner denied the whole thing.
Tuesday, July 31, 2007 1:44 PM
Maybe Destiny thinks that if they talk about it enough, it'll magically happen... like trying to convince yourself a lie you told is actually true.
Tuesday, July 31, 2007 2:42 PM
This truly is a milestone:

First time I've ever seen 5 articles in the News section about the same park within a matter of days.

Tuesday, July 31, 2007 2:44 PM
The firm I once worked for had an exec that would try to force issues by "leaking" info to the media. He didn't keep his job very long.
Tuesday, July 31, 2007 2:49 PM
Dick didn't sound too thrilled to be addressing the issue on the Conference Call (where again the "contact" was denied). Someone ain't telling it the way it is.
Tuesday, July 31, 2007 3:45 PM
"It's just in the early stages."

Probably the reason why Kinzel denied anything. Usually "early stages" means for backing out or what not. I'm guessing he doesn't want this to get leaked out and have people think it's 100%.

Tuesday, July 31, 2007 4:41 PM
...or it could be the early stage where one company is thinking about doing something but the other company wants no part of it ;)
Tuesday, July 31, 2007 11:12 PM
^ Interesting take. Could they theoretically be taken over "hostilely"?
Tuesday, July 31, 2007 11:27 PM
How does someone (or their business) amass 4 billion dollars without anybody noticing? I mean previous deals, acquisitions, etc. How did McDuff and Roham make so much money? Did they make that much money?
Wednesday, August 1, 2007 8:59 AM
Good point. Not exactly the kind of money you find in phone booths.
Wednesday, August 1, 2007 9:23 AM
You can't take over the company without owning a majority in it. Since even the largest investor owns barely 2% of all outstanding units, that would not be easy. Even then, a PE firm wants to own it all, not some of it. If they want to buy, they have to offer to buy out all units, at a premium, and unit holders have to approve it with a simple majority.
Wednesday, August 1, 2007 10:18 AM
So if 51% of stochholders approve the sale and 49% disapprove, those 49% are basically SOL and have to sell anyway? Or do they maintain ownership while the investor assumes ownership from the majority that decided to sell? I guess that's why Comcast was unable to buy Disney a few years back.

*** This post was edited by Rob Ascough 8/1/2007 10:27:57 AM ***

Wednesday, August 1, 2007 11:23 AM
If there is a simple majority, the buyer pays the agreed price to every unit holder and you have a pile of cash. The company is then private, and therefore not publicly traded.
Wednesday, August 1, 2007 6:14 PM
And the other way around. If 49% approve the sale and 51% don't, it's a no go. A PE firm isn't interested in being a majority shareholder in a publicly held firm. They'd eventually take it public again, selling shares at an even higher premium, but they get all the profits themselves.

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